In keeping with our mission statement, the firm has adopted, as overarching policy, a standard operational protocol and guidance as laid out in sections of our practice manual and based on the concept of “Total Quality Management” or TQM. Within the TQM framework, we will work to a number of key standards and norms as our ethos going forward in the day-to-day conduct of our business.
We are committed to providing an excellent service to all clients. The firm’s services should be recognised as being expert, accurate and appropriate. The firm strives to ensure that its advice is cost effective and communicated in a manner that is appropriate for each client. The firm is also committed to providing a truly professional service, meaning that all personnel must act with integrity in all their dealings with clients. This is in part achieved by ensuring that everyone complies with the provisions of the 2007 Code, Rule 2 (Client relations). All personnel should at all times consider the need to perform to the ‘four Cs’, namely: competence, confidentiality, commitment and courtesy.
Clients seek legal advice for a variety of reasons, but many approach a solicitor when they are vulnerable and in turmoil, whether in their personal lives or in their business activities. Clients are entitled to expect a genuine commitment from all personnel in handling their instructions, and for the firm to attach appropriate priority to their requirements.
The firm will accept instructions only where it can meet its commitment to the provision of an expert and professional service to clients. Where instructions would be beyond the expertise or the capabilities of the firm they will be declined. All heads of department maintain lists of work that the firm will and will not undertake; in any cases of doubt as to the ability of the firm to act appropriately for the client, the appropriate head of department should be consulted.
All clients are entitled to be dealt with in a respectful and courteous manner. This will have many implications, from not keeping clients waiting in the reception area without explanation, to showing them the way to and from meeting rooms, to returning telephone calls and e-mails as a priority, and generally taking an interest in them and their problems. All personnel should show a genuine concern for the firm’s clients by doing their best to help them.
It is important that the firm should at all times project a sense of professionalism in its dealings with clients. First impressions gained by clients do matter. All personnel should dress in a manner that is appropriate for a professional practice, and in particular avoid overly casual or inappropriate clothes e.g. jeans, tops with prominent logos, tracksuits etc. Please also try to conduct yourself in a way that will reassure clients. This can be achieved by appropriate behaviour around the office and a smile or a ‘good morning’ or ‘good afternoon’ to those clients you encounter in the office. Please try to be as helpful as possible to all clients of the firm – not just those that you happen to be dealing with.
1. General
All solicitors are bound by the professional rules which require confidentiality to be maintained in all dealings with clients. This means that nobody may reveal to any outsider the nature of instructions provided or advice given to any client, other than in the pursuit of the client’s instructions. In most circumstances it will also be inappropriate to reveal that the firm is in receipt of instructions from any named client. This is particularly the case in litigation, especially crime or divorce. If you are aware that friends or other people that you know are instructing the firm it may be tempting to reveal this information to others; do not do so. If you are ever in doubt as to whether you should reveal whether the firm acts for a given client, or give out his, her or its address, check with a partner. Breaches of confidentiality could cause considerable problems for the firm and will usually be treated by the partners as a serious disciplinary offence.
2. Client Confidentiality
The firm is under a duty to keep all client dealings properly confidential, other than in certain limited and exceptional cases. It is easy to fall foul of this important duty by thoughtless conversations and quick meetings in the reception area. Please keep any discussions of client business in the reception area to a minimum and, wherever possible, take clients into a meeting room when they come in to sign a document or bring in papers that need to be explained or discussed. What should be a short visit can easily change if the client asks questions and they should be entitled to do so out of the earshot of other clients or visitors.
You are also asked to keep personal conversations in the reception area to a minimum. The impression gained by clients overhearing conversations- especially if about the firm or other clients – in the reception area can be very negative.
The firm is more likely to project an organised and professional image if fee earners take responsibility to:
The reception area is the firm’s ‘shop window’ and is critical to the first impression that visitors will gain of the firm. The receptionists should take responsibility to ensure that:
If there is a delay of more than 10 minutes before the fee earner/staff member arrives, the receptionist should endeavour to:
The general rule is that at or near the outset of every matter the client should receive confirmation of:
This is achieved by use of the firm’s departmental and general client care letters which can be found in the document template folder on the main server and the firm’s standard terms and conditions.
The firm’s departmental and general client care letters can be tailored to the particular instructions received within the departmental precedents. Although its precise wording is not mandatory in all cases any material variations must be approved by a partner and must still comply with the professional requirements of the 2007 Code, Rule 2 (Client relations). This is most likely to apply where the client is a close friend or a relation to the adviser, but care is needed before any major variation of terms is agreed. The friend or relation becomes a normal client in all other regards and may be just as likely to complain or make a claim in the event of a problem with the services received. The view of the partners is therefore that variations from the approved precedents should re very much the exception rather than the rule. In all cases this letter should be sent out as soon as possible after instructions have been taken (guidance note 18 to Rule 2).
Compliance with Rule 2 will not always require provision to the client of all the information in the firm’s client care letter. Where the firm has established a settled pattern of dealings with regular clients formal terms should be established which can relate to all new matters opened for that client. Agreed terms are reviewed annually by the client partner, with special reference to any variation of fee levels. Since most such clients are commercial clients, the head of the commercial department maintains the formal agreements with regular clients which can be understood to apply unless the contrary is agreed. The list of such clients and the letters setting out agreed terms can be consulted on (See document template folder on the main server).
The other situation where a normal client care letter might not be sent out is where professional considerations would make it inappropriate. Such cases will be exceptional, but could include:
In any such instances a full letter has not been sent out a note must appear on the file setting out the reasons why a client care and detailing any alternative action that has been taken.
It is important that the client receives, in addition to client care information, confirmation of their instructions and objectives, and also the action that will be taken on their behalf.
None of us likes to be the subject of a complaint, but if the firm is truly committed to providing a quality service to clients all personnel need to pick up on client dissatisfaction when it does arise and address it as best they can. The firm’s complaints handling process seeks, therefore, to ensure that it:
Complaints Information
At Eagles, all clients will be given information about what to do if they have a problem with the service provided or any other aspects of the firm. This is also in keeping with code of conduct Rule 2.
Complaints Procedure
At Eagles, we define a complaint as any reasonable expression of client dissatisfaction or grievance.
Complaints will be identified by the member of staff who first comes in to contact with the complaint or expression of dissatisfaction or grievance however it is expressed. If it is in written form, this is likely to be the person who opens the post or reads the fax; if in electronic form, the person who opens the email and if verbal or via the telephone, the person to whom the client is speaking.
The following applies to all complaints received by the firm:
As soon as a complaint is received. it will be brought to the attention of the Complaints Manager who will carry out the following steps:
The Complaints Manager, Louisa Nkohkwo, will be the person with overall responsibility for complaints using the above procedure.
Even though a complaint is any expression of client dissatisfaction however it is expressed. Some degree of common sense is needed in the application of the complaints handling procedure. If a client says ‘you solicitors charge a lot for what you do’ it would not usually be sufficient to amount to a complaint. If, however, the client claims that a quote or agreed costs ceiling has been exceeded without notice to them it almost certainly will be. If, on checking the file, the fee earner is able to advise the client that a letter that the client had overlooked had been written to warn that the costs would be greater than previously discussed, the problem would probably have been dealt with and there would be no need to report the complaint as such. In all cases, however, it is necessary to take a view on how the client is reacting to the particular circumstances. The firm’s overriding objective is to address client dissatisfaction
As required by our complaints policy, the Complaints Manager will consider any complaint received in as objective a manner as possible and seek to resolve the dissatisfaction. In particular they will offer to meet with the complainant when possible and suggest appropriate redress. In so doing they will also consider if a notification need to be made to the insurers and also consider if any aspect of the quality system needs amendment.
All firms are obliged to make a copy of their complaints procedure available on request. The existence of the policy is referred to in the firm’s client care letter and the full version can be found in the firm’s complaint folder. If appropriate, you must refer the client to the policy, or print a copy off and send it to them if they might have difficulty in acquiring it for themselves.
Reporting a complaint
If it is necessary to report a complaint please complete the complaints report form in the document template folder on the main server and forward it to the Complaints Manager. Client complaints will usually involve no risk of loss to the firm or the client, but if there is any chance that the complaint could amount to circumstances that should be reported to the firm’s insurers you must stay on the side of safety by reporting it as such.
As required by our complaints policy, the Complaints Manager will consider any complaint received in as objective a manner as possible and seek to resolve the dissatisfaction. In particular they will offer to meet with the complainant when possible and suggest appropriate redress. In so doing they will also consider if a notification need to be made to the insurers and also consider if any aspect of the quality system needs amendment.
Complaints referred by the Legal Ombudsman
It is possible that a client may complain direct to the Legal Ombudsman without first following the procedures given in the previous paragraphs. In such circumstances, it will usually refer the complaint to the Complaints Manager who is the designated liaison person. The normal complaints procedures will then be followed
Complaints review
The Complaints Manager will maintain records of all complaints received and action taken on them. She is also responsible for conducting a review of all complaints records at least once a year to enable her/him to report to the firm on any trends. This will form part of an annual management review which is considered by the partners and reported to all staff. It is essential that all personnel learn from their experience and address any underlying problems. In this way the firm can use its complaints data to help to prevent future difficulties.
Making complaints
There may be occasions when a complaint may be made by the firm, either against another solicitor through the Legal Services Commission or through other procedures. The agreement of the Complaints Manager is needed before doing so in order that the professional and commercial standing of the firm can first receive proper consideration.
The firm has adopted the client feedback template and the procedure recommended by the Legal Services Commission. Client questionnaires will be given out at least once a year in a sample sufficient to obtain meaningful data, or with every closing letter at the end of each case. The frequency, method and sample size adopted will be decided upon by the Managing Partner and or the Quality Representative following each annual review. As a minimum, and in keeping with our Customer Pledge, the questionnaires will cover the following:
The partners are aware that asking questions to clients increases expectations and the survey will be published internally, together with any decisions and recommendations, in order that everyone can assist in any improvements that are called for.
When enquiries are made to the firm we will consider whether they are within the scope of work we undertake and within the competence of the advisor assigned. The supervisor will ensure that advisors work within their competence levels through the supervision procedures we have in place. Where there is a clear need identified for signposting or referral, all members of staff will know to use signposting and referral and will decide which method to use within the following guidelines:
Referrals will be made where we have established client relationships in a current matter, where we have undertaken work on the client’s current case and where we hold case information (or documents) that need to be passed on to the new provider.
Signposting will be the appropriate course of action where at an early stage it is clear, for example, that the enquiry concerns a subject outside the advisors area of expertise, there is potential for conflict of interest, or current caseload would affect the advisors ability to progress the case properly. Further assistance will be provided up to and including referral, where the client has special needs, when they appear to be particularly distressed or where the case seems unusually complex and it may be difficult for the client to make contact with a provider by themselves.
As a minimum all staff will signpost any individual whom the firm cannot help and this will involve at least one or more of the following:
Where the firm is unable to or excluded from obtaining public funding for a client, the client must be promptly referred to another eligible publicly funded firm and this must be properly documented in the clients file. All referrals must be done by following the procedure laid out in Section B1.3 below.
When carrying out referrals, the staff member will contact alternative service providers from the firm’s referral list and or the CLS/CDS directory (www.communitylegaladvice.orq.uk) until one is found that is able to take the case. Preference will be given to quality mark providers. If appropriate, an appointment will be made on the client’s behalf.
A copy of the firm’s referral form and covering letter will be sent to the receiving organisation detailing:
A copy of the completed referral form may be given to the client for their information explaining the reason for the referral and any other relevant information. A copy of the referral form will then be kept on file. In all instances the client will be told what role is will take and what service(s) they should expect from the new service provider. Any feedback that is later given by the client on the service provided by the new service provider will be recorded and reviewed during the annual review of referrals or sooner. Any cost implications identified will also be discussed with the client.
Referral information will be recorded and kept in the firm’s record of referrals. The records will be analysed at least annually by the Quality Representative and will contain the following:
Client enquiries about possible services are received:
It is essential that all enquiries as to whether the firm could or would be willing to act should be dealt with as quickly, efficiently and courteously as possible. Even if declining to act on this occasion, the firm has the opportunity to make a favourable impression for the next.
The firm is not obliged to act in all cases. Greater consideration will need to be given to enquiries from new clients as opposed to new matters from existing clients. The firm may not decline to act on grounds that would offend its policies on anti-discrimination. It could decline to act, however, on any of the following grounds:
In all such cases the client should be given such an explanation as is appropriate in the circumstances.
In addition there are situations where the firm is obliged not to accept work under the 2007 Code, subrule 2.01. These situations are:
When the firm is in receipt of instructions from joint clients it is important to check that all clients agree with the instructions. On the duty of disclosure between joint clients and the need for consent to disclosure of instructions from joint clients see the 2007 Code, guidance note 4 to Rule 6.
A ‘file opening‘ form must be completed whenever a matter is to be commenced. The client and matter number provided by the accounts department, coupled with the identification of work types, ensures that all dealings for clients are clearly distinguishable.
New matters often emerge from current matters and it is not always apparent when an issue is first raised as to whether a distinct new matter will develop. Fee earners must be aware of the need not to run separate matters under the same file and must be prepared to open a new file, perhaps transferring any papers to a colleague, as soon as it becomes clear that the issue is something other than a minor incidental issue related to the matter in hand.
Similarly, general files for commercial clients must not be used as a means of bypassing the normal file opening procedures. It is acceptable, however, for commercial fee earners in particular to run ‘miscellaneous‘ files for a particular client where a composite bill will eventually be raised, or for miscellaneous enquiries from different clients where a record of the conversation or communication is needed but it is not appropriate to open specific files.
Conflict of interests must be considered at the earliest opportunity before accepting instructions and then throughout the matter as it progresses. The evidence that this has been considered is a tick by the fee earner instructed in the conflict of interests box on the matter opening form. Any further deliberations must be the subject of an attendance note on file, outlining the considerations and action taken, with any such note being referred to on the matter opening form or file summary sheet.
It is the fee earner’s responsibility to check for conflicts of interest and to monitor the risk of conflicts arising after the matter has commenced. The accounts or admin departments may assist the fee earner in checking all matters as to whether a conflict of interest appears to exist by checking the name of any opponent against the computer database of existing relationships. It is important that all possible variations of names and identities are supplied. The accounts or admin departments will bring any concerns to the attention of the fee earner, whose responsibility it is to take the issue up with their supervisor in all difficult or unresolved circumstances.
Common sense checking for conflicts should never be disregarded. A fee earner having a concern that will not necessarily be highlighted by an accounts or admin department check should consider an e-mail around the firm to see if any colleague knows of any reason why the practice should not act. It should be stressed that for the firm to act where it should not do so could be seen as a professional offence and lead to disciplinary proceedings; the firm is also open to a claim for compensation or lost fees and the risk of at least one alienated client.
Where a conflict is found or believed to exist, any doubts as to the propriety of accepting instructions should be considered by the head of department/category supervisor. If it is felt that instructions should be declined, the client should be informed of this as soon as possible and they should be offered such explanation and recommendation as in all the circumstances is professionally appropriate.
Fee earners must be alert to the risk that a conflict may develop after a matter has started and must bring any such concerns to the head of department/category supervisor as soon as possible.
It is essential that all fee earning personnel act upon the client’s full, considered instructions. Instructions may be received by letter, telephone or at a meeting. If they are received other than at a meeting they should be acknowledged promptly, having regard to the sensitivity of the matter and its urgency to the client and legal process. Particular attention must be given to circumstances where instructions are received by one fee earner and then passed to another for attention.
Any instructions taken by telephone must be confirmed to the client in writing. Where this is done contemporaneously with the call, the copy letter/e-mail on file would function as an attendance note of the conversation. The exception to this is publicly funded matters, where a separate detailed telephone attendance note must also be kept on file as evidence of the work done.
Any particular methods of taking instructions, as through the use of checklists on a case management system, are noted in the additional departmental procedures and precedents.
It is important that instructions receive critical analysis on receipt. The 2007 Code requires at sub rule 2.02(1) that the client’s ‘objectives‘ must be identified and the client must be provided with a clear explanation of the issues involved and the options available to the client.
If the instructions contain inconsistencies or errors, or if carrying out the instructions would involve illegality by the client or the firm, unprofessional conduct by the firm, or potentially lead to undesired results for the client, any such problem must be raised with the client as soon as possible and must be resolved before the instructions can be acted upon, though it may be possible to undertake some work in the interim.
At the outset of the matter the fee earner will establish the following:
All of the points in above should be confirmed to the client, usually in writing, along with advice on the options available to the client and, if possible, the suggested action to be taken. See the previous section for what is required where there is a clearly established pattern of dealing on such instructions with that client or in certain instances of one-off advice.
The 2007 Code requires confirmation of the costs position to be provided to the client in most instances. Sub-rule 2.03(1) requires the client to be given the ‘best information possible about the likely overall cost of a matter both at the outset and, when appropriate, as the matter progresses’.
This means that hourly rates must be set out where they are to be used as the basis for the fees to be charged, along with further guidance so that the client can understand their exposure to fees and other costs. The general rule is that all costs information ‘must be clear and confirmed in writing’ (sub-rule 2.03(5)). The policy of the firm is to ensure that these provisions are complied with, notwithstanding the exception at sub-rule 2.03(7) that the full information might not always be required.
The difficulties of assessing helpful costs information at the outset of many more complex matters are recognised. Guidance note 36 to Rule 2 provides that in such cases it is required that you ‘provide the client with as much information as possible at the start and that you keep the client updated’. The note goes on to suggest agreeing a ceiling figure or review dates in such instances.
You will be prompted to provide the necessary information if you adopt the client care letter format in the document template folder.
There are other issues to consider in litigious matters in particular. These include:
As a general principle, the client’s consent to inspection of files is necessary at any assessment for Lexcel. You should note that the firm will obtain a confidentiality undertaking from the assessor, but in pursuance of Law Society guidelines the firm asks for the client’s consent by we of the standard wording on the point in the client care letter.
Where the client has indicated that they do not consent to inspection this should be clearly marked on the file and any information that would enable the assessor to know what the firm is doing for that client (e.g. matter print-outs) must not be disclosed.
Where the client has not refused consent the firm is entitled under Law Society guidelines to assume that consent has been obtained. In such circumstances, however, if the fee earner feels that matters have developed in such a way that the client would not now approve of disclosure, or if the firm feels that it would not be appropriate because of particularly sensitive aspects of the file, the firm may decline to submit the file to inspection.
The firm is required to maintain a backup system for all key dates. Key dates should be regarded as any date, the missing of which could give rise to a cause of action in negligence.
It is the responsibility of all fee earners to notify their head of department of any backup dates and to ensure that an entry is made to the key dates diary. The entry for any expiry of time periods such as limitation periods must be twofold:
It is the responsibility of the managing partner (can be delegated) to notify the fee earner responsible for any matter listed of an entry. This is done on a weekly basis. In the absence of the managing partner, the head of department / category supervisor will ensure that someone deputises for them. The notice is to be treated by the fee earner as incoming post and must be replied to.
During the absence of any fee earner, the notice therefore passes to another fee earner supervising that colleague’s activities in their absence and must always be actioned.
On occasions the fee earner may wish to amend a key date after it has been entered into the backup key date reminder system. If so, the procedure is as follows:
As a matter of principle every matter should have a clear strategy apparent from the file. This plan should show that thought has been given to how each client’s needs will be acted upon. It is recognised that it will often be difficult to finalise this in detail at the outset of a case or transaction because it may be impossible to assess the likely response of any other parties. It is essential, however, that clients are presented with a strategy for meeting their instructions as soon as possible with an explanation of how and why this might need to be varied.
In most cases the plan will simply be either a letter to the client or a separate memorandum on file.
If the plan is by memorandum, steps must be taken to ensure that the client is made aware of it and their agreement is obtained. In other cases a more detailed project plan, will be required. It is a matter of professional judgement for the partner or fee earner in charge of the matter to determine whether a first letter or detailed project plan is required. The following issues must be considered and dealt with:
The file should be a complete record of dealings on that matter. This means that all communications should be noted on the file, or be readily accessible if this is not the case. It is the responsibility of the fee earner handling the matter to ensure that the file is well maintained and, in particular that the file:
Well-maintained files reduce wasted time and effort for all and are likely to enable the firm to portray a more professional and organised image to clients and others.
If a file summary sheet is mandatory, it must be used on all matter files and kept up to date at all times by the fee earners handling that matter. This ensures that the state of the matter will be readily apparent to anyone else checking the file.
Attendance notes are vital to provide a record of advice given, instructions received, or decisions made about which there may be a dispute. They are also the primary evidence of time expended on a matter and are therefore vital for billing, notwithstanding the computerised time records.
Secretaries are frequently in direct contact with clients and others concerned with professional work, especially when a fee earner is not available. It is therefore equally important that secretaries should record written attendance notes on all issues that progress a client matter. All attendance notes must be filed on the correspondence clip to date order as soon as possible. Handwritten notes must be intelligible to the writer and others.
All papers, documents and items in relation to client work must be traceable within the office through their being filed or stored on the matter file at all times. This involves use of the client matter numbering system and the computer identification of all documentation. The location of all items and papers that are not kept within the file must be clearly recorded on that file.
Items of evidence that are in the possession of the firm or other physical items that the firm is required to retain in pursuance of instructions, must be labelled with the appropriate matter number and the client’s name.
Deeds and files are to be stored and tracked.
Consideration should always be given to copying items of sensitivity where their loss could cause particular difficulty for the firm or the client.
Proper care must be taken of files removed from the office. If taking files home the fee earner is required to leave a note on their desk or in their diary of which files have been taken. This is to minimise the time that can be wasted by looking for flies that are not in the office. Please take particular care about files in cars. In no circumstances should you leave files in an unlocked car, or overnight. Please also ensure that any work done on a client file on train journeys does remain confidential. In this respect please also consider who might overhear your telephone calls on mobile phones in trains or in public places.
All matters must be progressed in an appropriate manner having regard to the importance of the matter to the client, any instructions that they have provided on desired or necessary timescale and the constraints of the process concerned. In particular, fee earners will:
On occasions the firm will reach the unfortunate conclusion that it cannot continue to act for a client on a matter. Such circumstances could include the refusal of a client to provide instructions, the non-payment of an invoice or a breakdown of the necessary relationship. In all cases a partner must consent to the termination of a retainer and must provide reasonable notice to the client of the decision in writing.
Any changes to the matter plan should be made in a full and appropriate manner, such as by letter documenting the agreed amendments and agreed with the client. Any development that would cause the fee earner to doubt the costs information already provided should be reported to the client without delay.
The costs position should be reviewed and reported to the client as appropriate by way of a costs update unless they have agreed otherwise, as where the work is being done to a fixed quote. As a general rule the costs position must be discussed with the client before an estimate or agreed upper limit is exceeded. It is important to monitor progress towards costs estimates or other limits in order to raise the issue with the client in a timely manner.
The client must be informed in writing if there is a change of fee earner handling the matter or the designated supervisor, or if there are any other changes within the firm that affect the handling of their matter.
Undertakings are an important consideration for the firm. Guidance note 24 to Rule 10 of the 2007 Code defines an undertaking as ‘any statement, made by you or your flrm, that you or your flrm will do something or cause something to be done, or refrain from doing something, given to someone who reasonably relies upon it’. The following points should be noted:
The first rule is not to offer undertakings unless necessary. The second rule is that all undertakings require a partner’s consent or approval. The exceptions to this rule are set out in the departmental appendices and are limited to:
In all cases great care must be taken to ensure that the firm will be able to honour any undertaking given. It is vital that the firm limit undertakings to those for which it is competent. For example, the firm may not give an undertaking to repay a loan if this depends upon a third parry paying the monies to it. We do not give open undertakings; make each one for a specific amount and as detailed as possible. Furthermore, the wording of undertakings needs to take into account that the firm will only do what is within its power: We do not offer undertakings that the client will do a stated action.
Non-routine undertakings are noted by use of an undertaking sticker which must be placed on the outside front cover of the file and initialled by the partner giving or approving it. On the discharge of the undertaking the person doing so must initial to show that it has been discharged. No file may be archived until all undertakings have clearly been discharged.
An undertaking by e-mail must not be accepted.
The choice of counsel or other external expert should always be based on matching the client’s needs and priorities with the most suitable person for the role, having regard to the complexity of the service required, the timescale within which the report or service is required and the costs constraints of the client or their funder if they are to pay for the report or service or might need to do so.
The choice of external adviser should never be influenced by preferences on the part of the adviser or the client that are prejudicial in a manner that is prohibited by our policy on equality and diversity.
The first point of contact should be the list of approved counsels and experts, which is maintained as part of the firm’s central records. But it is always possible to choose an adviser not on this list if this is felt to be necessary or more appropriate. It is the responsibility of the managing partner to keep up to date the list of approved counsels and other professional contacts.
Suppliers will be selected on the basis of objective assessment except in exceptional cases where it would not be appropriate to do so. Suppliers’ details will be kept in a register of approved suppliers based on the following criteria:
Evaluations will be undertaken for all counsels and experts performances observed, and for all opinions and reports received and any adverse findings will be recorded so that the fee earners who want to instruct any counsel, experts or other suppliers in the future will be aware of any relevant issues. Any adverse findings for barristers who hold the Quality Mark must also be sent to the individual barrister concerned, other than in exceptional circumstances.
All recommendations for entry to or removal from the list should be made by submitting the relevant form to the managing partner.
The performance of those on the approved list will be constantly monitored. If anyone feels that the approved expert fails to meet the required standards, details are to be recorded on the matter file and a recommendation to remove that expert from the list should be considered.
Where appropriate, clients should be consulted on both the decision to involve experts and the selection of them. In the unlikely event of a client choosing an expert, that the firm would not approve of, the reservations of the firm should be mentioned. However, the client has the right to override the firm’s reservations, subject to normal professional standards on the propriety of all actions taken for clients. Where the client expresses a preference that is contrary to the firm’s equality and diversity policy their instructions will be challenged. If the instructions are not varied the firm should decline to act further in the matter. In all cases, however, a client may require that a particular medical examiner not be used on grounds of previous personal experience.
The client should be advised of the name and status of the expert/counsel, the likely timescale before a response will be received and the likely cost if the client will be expected to pay, or could be asked to do so.
Experts will receive instructions through letter, brief, telephone conversation or at a meeting. Where instructions are provided orally they must be confirmed subsequently in writing. In all cases a note of instructions or a copy of them must appear on the matter fire.
On receipt of advice from any counsel or expert the fee earner receiving it must consider its suitability and value. If(s)he considers it inappropriate (s)he should refer it back to the adviser with a detailed request for the improvement that is felt to be necessary to bring it into line with the firm’s expectations. If the standard of advice remains unsuitable, consideration should be given to the non- payment of the fee and to recommending the removal of that individual from the approved list. The failure of a barrister or expert to meet the firm’s standards must be noted on the matter file and the central record.
As and when experts’ fees notes are received they are met and settled before the end of the case unless a deferred payment arrangement is in place.
As soon as a client matter has been fully completed, the fee earner handling that matter is to close the file so that it can be archived.
The fee earner must ensure that all ledger balances have been reduced to nil otherwise the matter cannot be archived on the accounting system. The fee earner is also to assess and record the year for the eventual destruction of the file.
The file is then to be passed to a member of administrative team who will archive the file on the accounting system and send the file off to the archive. The process will allocate to the file a sequential storage number which will be recorded in the client matter details for future reference. The archiving process prevents any further postings to be made to the client or time ledgers and shows the matter as being closed, but all detailed entries including the matter details will be retained permanently in the accounting database and can be printed out if required later.
Before a file is archived there must be a final written review of the matter to see whether the client’s objectives were met and, if not, why not. There should be a final report to the client which will usually accompany any final invoice or receipt against monies held on the client’s behalf. The final review sheet questions on the file summary sheet must be initialled in order that the file can be archived. The admin team have been instructed to return any files where this has not been done. Likewise, files that have obviously not been ‘thinned‘ will be returned to the fee earner concerned.
Clients may need advice on storage of documents and files and of review dates that they should note. If it is felt inappropriate for any reasons not to provide a final report to the client (e.g. the firm is acting for a minor), this must be explained in a file note that details what alternative steps, if any, have been taken.
On the need for a concluding risk assessment see the section on risk assessment.
Formal after-care does not feature as a major element of the firm’s work, but such arrangements as do exist are dealt with in departmental instructions (for example, wills reviews and company secretarial work). The client will be advised of any future action they need to take.
The COFA partner, Ms Louisa Nkohkwo, has the direct responsibility for overseeing and managing financial affairs at Eagles Solicitors. The partner, of course, while passing control and supervision to the managing partner and to the accounts department staff must at all times take full responsibility for the operation of the firm’s accounts in accordance with the Solicitors’ Accounts Rules, which are available for inspection at www.sra.org.uk.
Individual fee earners are responsible for the financial management of their client matters especially as required by the Solicitors’ Accounts Rules and the detailed instructions that follow.
If anyone has cause to be concerned about any aspect of financial management, especially as related to client monies, they should refer their concern to the COFA/ managing partner or any other partner at once.
Generally, all personnel of the firm has a centralised accounting and time recording system and they have direct access to much of the system and the data through the computer network. The software is provided by Leap Legal Software. Immediate control is exercised by the COFA managing partner, Ms Louisa Nkohkwo, and any difficulties concerning the system should be directed to her.
All personnel have enquiry access to all client accounting and time recording data together with related print-outs. In addition, partners have access to the nominal ledger and some of the management reporting facilities. Apart from time recording entries, only the accounts department personnel have password-protected access to the various posting programmes.
Fee earners and secretaries are encouraged to make full use of the accounting information available to support their client work but should refer to the accounts personnel if specific help is required.
The accounting system is capable of producing a very large range of management reports both in respect of client matters and on the firm‘s accounting performance. The following main reports are produced by the accountant upon request.
Other reports can be produced on request to the accounts department. The managing partner has specific responsibility for requesting and reviewing reports and using them in management decision making.
Annual income and expenditure budgets are prepared and these are used in the monitoring of the firm’s financial performance. Each month the managing partner reviews the appropriate, monthly, quarterly and annual reports which fall due for that month.
Based largely upon the income and expenditure budgets and any known or anticipated cycles in, a cashflow forecast for the forthcoming year is prepared by the accountant. The cashflow forecast is kept under continual review and forms part of the monthly, quarterly and annual management review.
While cashflow is largely managed at firm level, it is important that all fee earners remain alert to the need for them to manage their own client matters carefully by ensuring that where possible money on account is obtained, chargeable time is fully recorded, that interim bills are raised when a matter allows, that final bills are raised promptly, that disbursements are monitored and where possible paid promptly, that counsel’s fees are properly allocated and that the fee earner remains involved in any credit control action.
Money is often received by cheque through the post but payment of cash is also often offered. The firm’s policy on cash receipts is influenced by its responsibilities under money laundering legislation and is governed by the section on money laundering above.
Cash is never to be left unattended, for example on a desk. Cheques received in the morning post must be sent direct to the accounts department without delay in order that the cheques can be safeguarded, identified and banked on the same day. Fee earners are informed immediately about the receipt of cheques and must give instructions to the accounts department as soon as possible for the cheque to be banked. Cheques received later in the day or direct by a fee earner are also to be sent to the accounts department without delay even if they cannot be banked on that day.
Any cash or cheques held by the accounts department overnight are to be secured in the safe or strong box.
Only designated personnel or personnel of the accounts department are authorised to issue formal receipts for cheques or cash.
If a fee earner requires a cheque to be drawn on Client General Account, Client Trustee Account or Office Account, he/she is to make a requisition request in writing to the accounts department for onward approval by the managing partner. The client name, matter number, bank account on which the cheque is to be drawn, payee, amount and brief details of the reason for the cheque, must be included.
Any request for a cheque to be drawn up needs to be made to the account department who will put the request and the accompanying documentation to the managing partner or in his absence the senior partner who will then approval the request or decline prior to signing the cheque.
The accounts department will make the assumption that cheques will be issued on that day and will affect the ledger posting accordingly. If the issue of the cheque is to be delayed, then the fee earner must make this clear and liaise with the accounts department accordingly.
A transfer form is to be used for authorising transfers of client and office monies. It is also to be used for authorising telegraphic transfers. Two copies of the form should be raised, the top copy to be sent to the accounts department for action and the duplicate retained on the client matter file. On occasions, it may be necessary to support the transfer form with a note of explanation.
The proper transferring of monies is directly the responsibility of fee earners and verbal instructions will not be accepted by the accounts department.
Payment out of client monies by cheque or transfer, irrespective of the amount, can only be authorised by a partner.
The write-off of any balance in respect of costs or disbursements can only be authorised by a partner and if the amount is £1,000 or greater, authority is first to be obtained from the COFA managing partner or the head of the appropriate department.
In exceptional circumstances it may be desirable to write off a balance of client monies where despite all endeavours, it has not been possible to trace the client. In such circumstances and on the authority of the managing partner, the balance may be paid to the Solicitors Benevolent Association (SBA). The SBA will undertake to repay the money to the firm if the client is subsequently traced.
All petty cash transactions are controlled by the accounts department. If petty cash is required, a petty cash form is to be fully completed and taken to the accounts department for their action. The form must clearly identify whether the expenditure is in respect of a client matter and is therefore recoverable, or is a charge to the firm itself.
Occasionally there may be a reason for a fee earner not immediately to send out to a client a costs bill or cheque that has been processed through the accounts department. However, the accounts department will not be aware of the delay and will therefore have posted the appropriate accounting transaction. In respect of a delayed costs bill, this could lead to debt collection action being taken for the non-payment of the bill when action should not have been taken. In respect of a delayed cheque, this could cause problems when reconciling the bank account.
Whenever there is delay in issuing cost bills or cheques, the accounts department is to be informed at once. Ideally the letter accompanying the bill should be sent to accounts so that the accounts department is aware for credit control purposes of the date on which the bill was sent. If a bill or cheque is to be cancelled altogether, then it must be returned to the accounts department for proper cancellation.
No cheque, whether drawn on Client Account or Office Account, is to be amended in any way or for any reason without reference to a partner and the accounts department. If the amount of a cheque is to be altered, then it must be returned to the accounts department so that the related posting transaction can be altered. Normally the faulty cheque will be cancelled and a new cheque issued.
Receipts from third parties must be submitted to the accounts department promptly for processing and recording.
At least once a month, the accounts department will issue a client ledger balances report to each fee earner. The report will show:
Each fee earner is to review the report against their client files within three days of receipt of the report, and to update the matter files by:
Through taking such action, client matters will be kept up to date which should be seen as a significant part of client care.
Inevitably from time to time fee earners will have queries on their client matter ledgers such as those that arise from small uncleared balances. While the accounts department will afford all reasonable help, it is the direct responsibility of the fee earner to first carry out the investigation to clear the query. They have the advantage of having the client matter file to help identify transactions and are able to review the ledgers from their own desk computer. If a problem persists, please raise it with the accounts department as soon as possible.
The firm’s credit control procedures are based upon the following main principles:
Once private client bills have been posted on to the ledger, they will be filed in the accounts department in date order on a lever arch binder, or electronically on a computer system. When a bill has been paid, it will be transferred to a paid binder with the bills filed in alphabetical/bill number order or also in electronic form on a computer system.
This method of filling will greatly assist with the credit control procedures as it will immediately identify those unpaid bills that require hastening action at whatever stage. In particular, as bills are paid and removed, there will be a residue of bills remaining that justify special attention. Any bill that remains unpaid for three months is regarded as being a potential problem.
Any publicly funded bills are filed in the accounts department in separate binders or electronically.
Once a bill enters the credit control process, the credit controller records what action has been taken plus any instruction or information about the debt received from the fee earner or other person concerned. It is most important that fee earners liaise closely with the credit controller to ensure that proper action is taken.
The escalating procedure for private client debts is as follows:
The head of accounts and the managing partner will monitor these procedures and will liaise with other partners when necessary.
At the end of each month, an aged debt report will be produced and will be distributed to the individual fee earners. All fee earners will therefore be fully aware of their personal client debtor position and should liaise as necessary with the credit controller on any action that can be taken.
At the end of each financial year, all debts that have been outstanding for 12 months or more will be automatically reserved in the firm’s accounts. This will have the effect of reducing the profits for that year by the amount of the reserved debts but it will enable the firm to recover any output VAT. The reserved debts will remain on the individual client ledger account and can continue to be hastened for payment. If payment or part payment is received then the profit costs will be reinstated as if it was a new bill. Both the credit controller and the fee earner must liaise closely when this occurs.
Any remaining reserved debts from the previous financial year will normally be written off on the authority of the managing partner after discussion with the relevant supervising heads of department. Such write-offs will have no effect on the profits as the reduction will have taken place at the reserving stage.
There will be times when a bill should be written off without the need to be first reserved, e.g. following bankruptcy. Again write-off can only be authorised by a partner.
Time recording is used to support the billing process and also provides essential management information.
The firm’s time recording system is directly linked to the accounting system. When a new client matter is entered on to the system, the time ledger is automatically opened. Time recording information on every matter can be obtained direct from individual desk computers, either on screen or by a printed report.
Time is recorded in six-minute units with each unit being costed as follows:
The computer time record will show individual time postings per fee earner and a running total on unbilled time shown in terms of hours and minutes, value and activity. All time spent on a client matter must be supported by relevant evidence on the client file such as a copy letter or attendance note.
When a bill is posted on to the matter ledger, the amount of unbilled work in progress is either reduced to nil, or it can be reduced by a set amount as indicated by the fee earner. This may often be the case when an interim bill is prepared.
Time postings can be made in one of two ways, or a combination.
The objective is to ensure that all genuinely chargeable time is captured for both billing and management purposes.
Non-chargeable time may also be recorded where appropriate and should be differentiated, e.g. holiday, training, sickness, administration, marketing, etc. A particularly useful non-changeable activity is ‘non-chargeable client time’ where brief client work is undertaken, e.g. a phone call after the matter has been finished, and the fee earner is clear that the time will not be charged out.
Interest will be paid to clients in accordance with the current Solicitors’ Accounts Rules (except where clients have specifically agreed to waive their entitlement to interest under those Rules).
Where a file is to be closed, written instructions are sent to the accounts department to close the relevant ledger and include comments as to how to deal with any outstanding unbilled time, unpaid disbursements and any monies held in client account. The relevant accounts information is held in accordance with the Solicitors’ Accounts Rules for a minimum of six years.
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